By Amin Kef (Ranger)
The soaring cost of rice in Sierra Leone has become a critical issue, with citizens increasingly struggling to afford the staple food. Many attribute the price hike to the recent implementation of the 2024 Finance Act, which reintroduced a 5% import duty on rice. The decision, while intended to generate revenue and protect local rice production, has instead intensified the financial strain on consumers, leading to widespread calls for Government intervention.
Rice is not just a dietary staple in Sierra Leone; it holds deep economic and cultural significance, particularly in rural communities. It accounts for nearly 20% of household food spending, making it the largest component of the average family’s grocery budget. Although some rural households rely on homegrown rice, approximately 85% of the rice consumed nationwide is purchased, making price stability crucial for food security.
The recent conflict between Israel and Gaza has fueled concerns about global supply chains, adding to the challenges faced by Sierra Leone. As a result, rice prices have surged even further, now constituting over 32% of household food consumption and a staggering 40% for rural poor families.
The situation has reached a tipping point, with even small bags of rice becoming unaffordable for many. Citizens are urging President Dr. Julius Maada Bio and the Minister of Finance to reconsider the import duty, arguing that the current policy is unsustainable for the majority of Sierra Leoneans.
Importers, who bear the brunt of the restored 5% duty, have passed these costs onto consumers. Consequently, rice stocks that previously sold out within months now remain unsold for extended periods as households reduce their purchasing. Many believe that waiving or reducing the import duty would provide immediate relief by allowing importers to lower their prices, thereby making rice more accessible to the population.
The Ministry of Finance, however, maintains that the reintroduction of the import duty is vital for supporting domestic rice production through the “Feed Salone” initiative. Minister of Finance, Sheku Ahmed Fantamadi Bangura, has stated that the revenue generated from this tax will be reinvested into agricultural development, including funding for equipment and infrastructure improvements. He also highlighted the broader goals of the 2024 Finance Act, which aims to rationalize the tax base and improve fiscal efficiency while promoting local production.
Despite these assurances, the Government’s plan to introduce a pricing formula for essential commodities like rice has yet to materialize. This delay has left many questioning whether the current approach is the best way to balance revenue generation, food security and consumer protection.
Further complicating matters are poor road networks that hamper the transportation of agricultural goods from rural areas to urban markets. The high cost of transportation not only inflates food prices but also encourages smuggling to neighboring countries where farmers can earn better returns. Addressing these infrastructure challenges is essential to stabilizing prices and ensuring that local production meets domestic needs.
As food insecurity deepens, the urgency for a more comprehensive solution grows. While efforts to bolster local rice production are ongoing, immediate measures, such as adjusting the import duty and improving market access, are crucial to preventing widespread hunger. Without decisive action, the majority of Sierra Leoneans may continue to face the harsh reality of unaffordable rice prices, threatening the well-being of households across the country.
